Will medical or chiropractor liens be deducted from my settlement in Montana?

Short answer: Possibly. Whether medical or chiropractic bills are deducted from your settlement depends on who has a valid lien or subrogation right, whether you signed an assignment or lien agreement, and whether public programs (like Medicare or Medicaid) or private insurers have reimbursement claims. You should get written payoff statements and talk with a Montana personal-injury attorney before signing any release.

Detailed answer — how liens and reimbursements work in Montana

This section explains the main types of claims that can reduce your settlement and what to do about them. This is educational information, not legal advice.

1) Provider liens and signed agreements

Some medical providers or chiropractors try to protect their right to be paid by getting you to sign a written assignment or lien agreement at the time of treatment. If you sign an assignment of benefits or a written lien that covers third-party recoveries, the provider may have the contractual right to seek payment directly from your settlement.

2) Health insurer subrogation (private insurance)

If a private health insurer paid your medical bills, the insurer often has a right of subrogation or reimbursement — meaning it can seek repayment from any settlement you obtain that is attributable to the injury. The insurer’s right may be contractual (in your plan documents) or governed by state law, and the insurer may assert a lien or demand repayment. How much they can recover and when they must be repaid can vary based on your policy and Montana law.

3) Medicare and Medicaid

Federal and state health programs have strict repayment rules. Medicare has a federal right to recover conditional payments made related to your injury; it typically requires repayment from settlement proceeds. Medicaid (Montana Medicaid) may also have a lien or recovery claim against settlement funds. These programs often require coordination before a final release of funds.

4) Court-ordered or statutory liens

Some jurisdictions allow courts or statutes to create liens in favor of hospitals or providers. Montana statutes and administrative rules control specific lien procedures and priorities; consult the Montana Code Annotated for statutory text and local rules. The Montana Code is available here: https://leg.mt.gov/bills/mca_toc/. If a provider has properly recorded or served a lien, the lien may attach to the settlement.

5) Priority: attorney fees and lien payment

How attorney fees, costs, and liens get paid depends on the agreement you have with your lawyer and on the lien rights. Contingency-fee agreements commonly entitle the attorney to a percentage of the gross recovery; however, some liens (especially statutory or governmental liens) may have priority and must be paid from the settlement before you receive proceeds. How liens are apportioned between plaintiff and attorney (or whether the lawyer will reduce fees to cover liens) often requires negotiation and case-specific analysis.

6) Practical effect: what you may see at distribution

• If no valid lien or subrogation demand exists, you (and your attorney) keep settlement funds according to your fee agreement.
• If providers or insurers present valid payoff statements or liens, their amounts are usually paid from settlement proceeds — either before you get money or from the amount you would otherwise receive.
• If Medicare or Medicaid has a claim, federal/state rules often require repayment from settlement before distribution to you.

What you should do right away

1. Request written statements from every medical provider and chiropractor showing itemized charges and any lien, assignment, or written agreement you signed.
2. Ask every health insurer who paid bills for a formal subrogation or reimbursement demand and a current payoff amount in writing.
3. Get a Medicare conditional payment search (if Medicare might have paid) and follow CMS procedures for resolving repayment.
4. Do not sign a final settlement release until all lien and subrogation issues are documented and resolved, or the settlement is structured to protect disputed amounts.
5. Talk to a Montana personal-injury attorney familiar with lien negotiation and state/federal repayment rules before you accept or cash settlement checks.

How liens can be reduced or negotiated

Providers and insurers commonly negotiate for less than the full billed amount. Typical strategies include:

• Ask for an itemized bill and a reduced payoff amount in writing.
• Use your attorney’s leverage: many providers accept discounts to close accounts quickly.
• Propose escrow of disputed amounts while you secure a settlement release for the rest.
• If Medicaid/Medicare is involved, use their administrative processes to obtain a final demand or conditional payment amount and then negotiate any allowable reductions per program rules.

Helpful links and resources

• Montana Code Annotated (MCA) — Table of contents: https://leg.mt.gov/bills/mca_toc/
• Centers for Medicare & Medicaid Services (CMS) — for Medicare repayment rules: https://www.cms.gov/
• Montana Department of Public Health & Human Services (Medicaid information): https://dphhs.mt.gov/

Helpful Hints

• Get everything in writing — itemized bills, lien statements, subrogation demands, and payoff quotes.
• Do not sign an assignment or lien agreement unless you understand the consequences for your settlement.
• Keep all medical records and billing correspondence organized; they help your attorney negotiate liens and prove what treatment relates to the claim.
• If Medicaid or Medicare paid, contact those agencies early to learn their payoff procedures — they often take longer and have strict rules.
• Consider escrow or court-supervised distribution if a lien dispute could delay your settlement distribution.
• Hiring an attorney experienced with lien negotiation will often result in a better net recovery than handling claims alone.

Disclaimer: This information explains general principles under Montana law and is educational only. It is not legal advice and does not create an attorney-client relationship. Laws and agency procedures change. For specific legal advice about your situation, speak with a licensed Montana attorney.